This Question: 1 pt 9 or 14 (0 complete) Find the average daily balance for the

Question

This Question: 1 pt 9 or 14 (0 complete) Find the average daily balance for the given Aug 17 Billing Date credit-card account Assume the billing date is the Aug 21 Mail Order $ 26.94 $ 25.41 same day each month, and use the actual number Aug 23 Returns of days in each month. Then find the finance charge Aug. 27 Wine if the previous balance was $956.32 and the interest Aug 31 Payment is 27% per month on the average daily balance Finally, find the balance at the end of the billing cycle $ 31.82 $122 Sept. 9 Returns $71.14 Sept 11 Birthday Gift $115 Sept 14 Cash Advance $150 The average daily balance is S(Round to the nearest cent as needed) The finance charge is (Round to the nearest cent as needed ) The balance at the end of the billing cycle S (Round to the nearest cent as needed) ent Math to E Enter your answer in each of the answer boxes

Explanation / Answer

The following are the debits/credits to the Card:

                                                 Opening Balance - $ 956.32           Balance after the transaction

The opening balance as on Aug. 17 is $ 956.32 which continues till Aug. 21. The average balance can be computed as under:

[(956.32)*4+( 983.26)*2+(957.85)*4+(989.67)*4+ (867.67)*9+(796.53)*2+(911.53)3+(1061.53)*3]/31 = (3825.28+1966.52+3831.40+3958.68+7809.03+1593.06+2734.59+3184.59)/31 =28903.15/31 = $932.36 ( on rounding off to the nearest cent) .

Thus the average daily balance is $ 932.36.

The finance charge is ($ 932.36)*2.7 % = $25.17 (on rounding off to the nearest cent) .

The balance at the end of billing cycle is $ 1061.53+$25.17 = $1086.70

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